In: Operations Management
Linear Programming:
A real estate developer is planning a new mini apartment
complex.
Three types of units can be built: one-bedroom apartments,
two-bedroom apartments, and three-bedroom apartments.
Each one-bedroom apartment requires 700 square feet; each
two-bedroom apartment requires 850 square feet; and each
three-bedroom apartment requires 1,250 square feet.
The developer wants to keep a mix of apartment types in the
complex. He believes that the number of one-bedroom apartments
should be at least 15% of the total number of apartments. However
three-bedroom apartments should not be more than 30% of the total
number of apartments.
Local zoning laws do not allow the developer to build more than 42
units in this particular building location, and restrict the
building to a maximum of 36,000 square feet.
Market studies show that one-bedrooms rent for $825 per month,
two-bedrooms for $1,225 per month, and three-bedrooms for $1,775
per month.
a)Determine the constraint for square feet.
b)Determine the constraint for the number of total
units.
c) Determine the constraint for one-bedroom
apartments.
d) Determine the objective function.
Let's assume the number of one-bedroom apartments is X, the number of two-bedroom apartments is Y and the number of three-bedroom apartments is Z.
a) Total square feet available is 36,000 sq ft
Total square feet required for the apartments = 700 X + 850 Y + 1250 Z
So, the constraint for square feet is as follows:
700 X + 850 Y + 1250 Z < = 36,000
b) Total number of units allowed = 42
So, the constraint for the number of total units is as follows:
X + Y + Z <= 42
c) The number for one-bedroom apartments should be at least 15% of the total number of apartments.
So,
X >= 15 % of ( X + Y + Z)
X >= 15 ( X + Y + Z) / 100
100 X >= 15 X + 15 Y + 15 Z
85 X -15 Y -15 Z >= 0 , or 15 Y + 15 Z - 85 X <= 0
Therefore, the contraint for one-bedroom paprtments is as follows:
15 Y + 15 Z - 85 X <= 0
d) The objective function should be the maximization of rent. Let's
assume the objective function is G
Total rent = 825 X + 1225 Y + 1775 Z
Therefore, the objective function is as follows:
Max G = 825 X + 1225 Y + 1775 Z